Correlation Between Kweichow Moutai and Nantong Haixing
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By analyzing existing cross correlation between Kweichow Moutai Co and Nantong Haixing Electronics, you can compare the effects of market volatilities on Kweichow Moutai and Nantong Haixing and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kweichow Moutai with a short position of Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kweichow Moutai and Nantong Haixing.
Diversification Opportunities for Kweichow Moutai and Nantong Haixing
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kweichow and Nantong is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Kweichow Moutai Co and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec and Kweichow Moutai is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kweichow Moutai Co are associated (or correlated) with Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of Kweichow Moutai i.e., Kweichow Moutai and Nantong Haixing go up and down completely randomly.
Pair Corralation between Kweichow Moutai and Nantong Haixing
Assuming the 90 days trading horizon Kweichow Moutai Co is expected to under-perform the Nantong Haixing. But the stock apears to be less risky and, when comparing its historical volatility, Kweichow Moutai Co is 1.45 times less risky than Nantong Haixing. The stock trades about -0.14 of its potential returns per unit of risk. The Nantong Haixing Electronics is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,229 in Nantong Haixing Electronics on November 4, 2024 and sell it today you would earn a total of 127.00 from holding Nantong Haixing Electronics or generate 10.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kweichow Moutai Co vs. Nantong Haixing Electronics
Performance |
| Timeline |
| Kweichow Moutai |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nantong Haixing Elec |
Kweichow Moutai and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kweichow Moutai and Nantong Haixing
The main advantage of trading using opposite Kweichow Moutai and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kweichow Moutai position performs unexpectedly, Nantong Haixing can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| Kweichow Moutai vs. Shanghai Rongtai Health | Kweichow Moutai vs. Heren Health Co | Kweichow Moutai vs. De Rucci Healthy | Kweichow Moutai vs. Shandong Sanyuan Biotechnology |
| Nantong Haixing vs. Shanghai Rightongene Biotechnology | Nantong Haixing vs. Shandong Sanyuan Biotechnology | Nantong Haixing vs. Wuhan Hvsen Biotechnology | Nantong Haixing vs. Liaoning Chengda Biotechnology |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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